Aon 1Q Net Income Up 38 Percent

NU Online News Service, April 29, 2:39 p.m. EDT

Aon Corp. says its 2011 first-quarter net income attributable to stockholders increased 38 percent to $246 million as the broker saw organic revenue growth in both its retail brokerage and consulting services businesses.

Aon's 2010 first-quarter net income attributable to stockholders was $178 million.

The brokerage's total revenue increased 45 percent to $2.8 billion in the 2011 first quarter due to a 42 percent increase in commissions and fees resulting from acquisitions, primarily its acquisition of Hewitt, the firm says.

Aon says revenue for its risk-solutions segment increased 4 percent to $1.6 billion due to a 2 percent organic growth in commissions and fees, a 1 percent favorable impact from foreign-currency translation, and a 1 percent favorable impact from acquisitions and divestitures.

Revenue for Aon's HR-solutions segment increased 247 percent to $1.1 billion due mainly to the Hewitt acquisition. Aon says organic revenue in consulting services increased 4 percent, reflecting strong growth in international health and benefits and human capital consulting.

“While macro conditions remain challenging globally, we are optimistic about the underlying strength of our business as highlighted by the repurchase of $350 million of common stock in the quarter,” says Aon President and CEO Greg Case in a statement.

He adds, “We are firmly on track to deliver growth in both of our segments in 2011, our restructuring programs are delivering cost savings, and we have solid financial flexibility.